Insurance, non-bank financial institutions (NBFIs), engineering and cement stocks led the Dhaka Stock Exchange (DSE) rally in the first half of 2026 as investors rotated into sectors showing improving earnings and recovery potential.
General insurance delivered the strongest sector return at 47.2 per cent, followed by NBFIs at 33.3 per cent, textile at 26.2 per cent, cement at 21.6 per cent and engineering at 20.4 per cent, according to BRAC EPL Stock Brokerage.
The brokerage said improving profitability supported cement shares, while recovering earnings boosted NBFIs.
Among banks, City Bank surged 50.8 per cent, BRAC Bank gained 19.4 per cent, Prime Bank rose 9.8 per cent and Eastern Bank added 5.5 per cent. The banking sector nevertheless fell 15.6 per cent overall as rising non-performing loans, higher funding costs, slower business growth and heavier provisioning continued to weigh on sentiment.
IPDC Finance topped the NBFI performers with an 82.8 per cent gain, followed by LankaBangla Finance at 35.0 per cent, IDLC Finance at 21.8 per cent and Delta Brac Housing Finance at 18.5 per cent.
Engineering shares also outperformed, led by BSRM Ltd with a 40.6 per cent return and BSRM Steels at 37.2 per cent. GPH Ispat gained 12.5 per cent, while Walton Hi-Tech Industries rose 6.4 per cent.
Among pharmaceutical companies, Beximco Pharmaceuticals climbed 37.7 per cent, Renata gained 16.4 per cent and Square Pharmaceuticals advanced 12.8 per cent.
Telecommunication and food shares lagged the broader market. The telecommunications sector returned 6.0 per cent, with Robi Axiata rising 15.6 per cent, Bangladesh Submarine Cables gaining 24.4 per cent and Grameenphone edging up just 0.7 per cent.
The food and allied sector declined 3.2 per cent as British American Tobacco Bangladesh fell 11.7 per cent, offsetting Olympic Industries’ 12.8 per cent gain.
The report said the breadth of gains across multiple sectors suggests the first-half rally was driven by broader participation rather than a handful of heavyweight stocks.
